Velo3D, Inc. Implements Strategic Stock Adjustment
Understanding Velo3D's Recent Stock Split Announcement
Velo3D, Inc. (OTC: VLDX), a key player in additive manufacturing technologies, has recently announced an important decision regarding its common stock. The company's board of directors has okayed a 1-for-15 reverse stock split. This strategic move is seen as a measure to strengthen the company's market position, thereby facilitating potential future listings on a national securities exchange.
Details of the Reverse Stock Split
The reverse stock split means that every 15 shares currently owned will automatically convert into one share. This transition is set to take effect when trading resumes on the OTCQX under the new symbol "VLDXD" for a duration of 20 business days, post which trading will revert to the original symbol "VLDX". The Company has communicated that the CUSIP number for its common stock will change to 92259N 302, effectively marking a new chapter in its trading history.
Impact on Outstanding Shares and Stockholder Rights
As a result of this split, the total number of outstanding shares is expected to decline significantly, moving from around 211 million down to approximately 14 million shares. However, the reverse stock split will not impact the number of authorized shares, which remains stable at 500 million. Importantly, the par value of the common stock will also remain unchanged at $0.00001 per share, ensuring that the Company's financial integrity is preserved during this transition.
Aiming to Meet Market Requirements
This maneuver aims primarily to elevate the common stock's trading price to comply with initial listing requirements mandated by national exchanges. While there is optimism associated with this move, the company has cautioned stockholders that there are no guarantees the price of the common stock will meet the needed requirements for listing, nor that the company will fulfill all regulatory prerequisites. This consideration reflects a prudent approach taken by Velo3D as it seeks to enhance its market presence.
Positioning for Future Growth
As Velo3D pivots towards achieving its strategic goals, Continental Stock Transfer & Trust Company has been designated as the transfer agent for managing the reverse stock split. Stockholders who hold shares electronically will not need to take any action to receive their post-split shares, assuring a seamless experience during this transitional phase. Meanwhile, those who invest through different platforms will have their accounts adjusted automatically, thanks to the intricate systems in place.
About Velo3D and Its Innovations
Velo3D has garnered recognition in the metal 3D printing sector, known for revolutionizing additive manufacturing for critical metal parts. The company's cutting-edge technology breaks the barriers faced by legacy metal 3D printing, an evolution that enables engineers and designers to produce complex metal components previously deemed unmanufacturable. With an extensive suite of solutions, including the Flow print preparation software and Sapphire printer models coupled with the Assure quality control system, Velo3D empowers industries such as aerospace, power generation, and semiconductor to innovate freely and effectively.
Frequently Asked Questions
What is a reverse stock split?
A reverse stock split consolidates the number of outstanding shares while increasing the share price, generally aimed at meeting exchange listing requirements.
How will the stock split affect my shares?
If you own shares in Velo3D, your shares will be automatically converted to reflect the new ratio during the stock split without the need for any action from you.
When will the new symbol come into effect?
The new trading symbol "VLDXD" will be used for 20 business days after the split before reverting to the original symbol "VLDX".
What remains unchanged after the split?
The number of authorized shares remains unchanged at 500 million, and the par value of each share will still be $0.00001.
How can I learn more about Velo3D's technology?
For more information on Velo3D's innovative offerings and their applications, you can visit their official website or follow their updates on social media platforms.
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